Moody's Upgrades Argentina to B3 From Caa1, Changes Outlook to Positive From Stable

By Stephen Nakrosis

Moody's Ratings raised the government of Argentina's long-term local and foreign-currency issuer ratings to B3 from Caa1, and changed its outlook to positive from stable.

Moody's said the decision reflects assumptions the country's default risk declined, given that macroeconomic stabilization advanced beyond the initial adjustment phase. In addition, Moody's said Argentina's sustained fiscal surpluses, a decline in inflation and continued economic liberalization have acted to strengthen its policy credibility and reduce macroeconomic volatility.

Moody's also pointed to stronger export performance, rising foreign direct investment in energy and mining, and improved access to external financing as positive factors.

Reserve accumulation has strengthened this year, Moody's said, adding the central bank has purchased more than $11 billion in foreign exchange through the middle of the year without generating exchange rate pressures.

Political risks remain ahead of the 2027 general election, Moody's said, adding it considers the range of policy outcomes has narrowed relative to previous cycles, which increases the probability of policy continuity and sustained gains in external liquidity and debt payment capacity.

In May, Fitch Ratings upgraded Argentina to B- from CCC+, following October elections which saw current President Javier Milei emerge with a stronger popular mandate.

Milei, who won election in 2023, took office amid promises to tame inflation and institute more market-friendly economic policies.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

July 21, 2026 17:30 ET (21:30 GMT)